Tags: capital one | card

Capital One to Sell $1.25 Billion of Stock for Card Purchase

Wednesday, 14 Mar 2012 05:59 PM

Capital One Financial Corp., the fifth-biggest U.S. credit-card lender, said it’s selling $1.25 billion of its shares to help fund the acquisition of HSBC PLC’s U.S. card business.

Morgan Stanley, Barclays PLC, Citigroup Inc. and Credit Suisse Group AG are working on the offering, McLean, Virginia-based Capital One said Wednesday in a statement. The firm said in August that it planned to raise that amount of capital.

The equity offering will help the lender complete its second major acquisition of the past year as Chief Executive Officer Richard Fairbank works to transform the bank into one the largest in the U.S. Capital One completed a $9 billion purchase of ING Direct USA earlier this year to gain about 7 million customers and $80 billion in deposits. The HSBC deal will bring about $30 billion in assets to Capital One.

First-quarter earnings from continuing operations will be at least $2.50 a share, including an accounting gain of about $600 million, or $1.15 a share, tied to the acquisition of ING Groep NV’s online U.S. bank, Capital One said in a separate regulatory filing.

Capital One climbed $1.38, or 2.7 percent, to $52.33 in New York. The shares have advanced 24 percent this year, compared with a 22 percent gain for the 24-company KBW Bank Index. The stock slid 0.8 percent at 5:17 p.m. in extended New York trading, after the offering was announced.

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2012-59-14
Wednesday, 14 Mar 2012 05:59 PM
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